Questions: a. What is the balance of Accounts Receivable at the END of the year? b. Assume Martinez Group uses the Percent of Receivables Method. Based on prior experience, Martinez Group estimates that 7% of receivables will ultimately prove to be uncollectible. Record the adjusting entry for Bad Debt Expense at the end of the year. What is the value of NET Accounts Receivable at the end of the year? c. Assume Martinez Group uses the Percent of Credit Sales Method. Based on prior experience, Martinez Group estimates that 10% of credit sales will ultimately prove to be uncollectible. Record the adjusting entry for Bad Debt Expense at the end of the year. What is the ending balance in the Allowance for Doubtful Accounts? What is the value of NET Accounts Receivable at the end of the year?

Questions: a. What is the balance of Accounts Receivable at the END of the year? b. Assume Martinez Group uses the Percent of Receivables Method. Based on prior experience, Martinez Group estimates that 7% of receivables will ultimately prove to be uncollectible. Record the adjusting entry for Bad Debt Expense at the end of the year. What is the value of NET Accounts Receivable at the end of the year? c. Assume Martinez Group uses the Percent of Credit Sales Method. Based on prior experience, Martinez Group estimates that 10% of credit sales will ultimately prove to be uncollectible. Record the adjusting entry for Bad Debt Expense at the end of the year. What is the ending balance in the Allowance for Doubtful Accounts? What is the value of NET Accounts Receivable at the end of the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable
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At the end of the current year, Accounts Receivable has a balance of $926,220 Allowance for Doubtful Accounts has a credit balance of $5,149 and sales for the year total $3,960,000. Bad debt expense is estimated at 2 of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $4 Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. 2$